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    Estimation & Forecasting

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    Calculate fraction of firm's shares,ownership and rate of return

    Please use the attached spreadsheet!!! Thank you!!! Chariot.com needs $500,000 in venture capitalto bring a new Internet messaging service to market. The firm's management has approached Route 128 Ventures, a venture capital firm located in the high-tech start-up mecca known as Route 128 in Boston, Massachusets, which has

    Forecast project free cash flow

    Please see and use the attached spreadsheet! Thank you! TCM Petroleum is an integrated oil company headquartered in Fort Worth, Texas. Income statements for 2005 and 2006 are found below ($ millions):(see the attached spreadsheet) In 2005 TCM made capital expenditures of $875 million followed by $1,322 million in 2006. TCM

    Demand Estimation and Forecasting

    You have the following data for the last 12 months' sales for the PRQ Corporation (in thousands of dollars): January 500 July 610 February 520 August 620 March 520

    Sales Trend analysis

    1. Sales Trend Analysis. Scatter designs, produces and installs energy efficient window systems in commercial buildings. During the past 10 years, sales revenue has increased from 25 million to 65 million. A. Calculate the company's growth rate in sales using the constant growth model with annual compounding. B. Derive a 5-y

    "index adjusted" sales forecast

    An economist had estimated the sales trend line for the Sun Belt Toy Company as follows: S = 43.6 + 0.8t S represents Sun Belt's monthly sales (in millions of dollars), and t = 1 in January 2000. t The monthly seasonal indexes are as follows: January 60 April 110 July 90 October 110 February 70 May 110 August

    Optimal Capital Structure Problem

    The market value of the equity for a levered firm can be found by using the simplified method. a) Calculate the expected earnings per share (EPS), the standard deviation of EPS, and the coefficient of variation of EPS for the three proposed capital structures. b) Determine the optimal capital structure, assuming (1) maxi

    Applying Time Value

    A factory costs $400,000. You forecast that it will produce cash inflows of $120,000 in Year 1, $180,000 in Year 2, and $300,000 in Year 3. The discount rate is 12 percent. Is the factory a good investment? Explain.

    Forecasting Payments

    If a firm pays its bills with a 30-day delay, what fraction of its purchases will be paid for in the current quarter? In the following quarter? What if its payment delay is 60 days?

    Dilbert's Forecast of High Health Care Bills

    It is 2007 and you are a newly minted MBA. Your employer sends you on a reconnaissance mission to Roswell, New Mexico. Your CEO wants to relocate the firm's customer service operation to Roswell, but she is at odds with Dilbert, the recently appointed Director of Human Resources department. Dilbert says that the residents of

    Incremental Costs to Service an Active Customer

    (See attached file for full problem description) --- Using historical data and some forecasting models, a company identifies two types of customers it serves. The first group it calls the "steady spenders" and the second group it labels the "future loyals". It expects to recruit 1000 of each type for the current period (pe

    Quantitative Decison Making for business - Forecasting - Management Science

    Hi this is a forecasting problem that can be solved using Excel with the solver-add in on it. Please answer all parts to the question . If you need any information or have a question Please let me know thanks. 3. A company has been experiencing growth in demand for its principal product over the past several years and has c

    Forex market

    A 3 * 9 FRA has an agreement rate of 4.75%. You believe 6M libor in 3M will be 5.125%. You decide to take a speculative position in a FRA with a $1,000,000 notional value. There are 183 days in the FRA period. Determine whether you should buy or sell the FRA and what your expected profit will be if your forecast is correct a

    Set up a time series

    Set up a time series, and, hold out a few values at the end, graph the remaining observations. Now, use a formal approach either build an ARIMA model, or employs an exponential smoothing algorithm. Compare the judgmental and quantitative forecasts with the actual outcomes.

    Exponential Smoothing Algorithm

    1. The time series Xt is generated by the ARIMA (1,1,2) model (1-0.60B)(1-B)Xt= (1 - 0.86B + 0.30Bsquared)at Where B is the back-shift operator, and at is white noise. Is there an exponential smoothing algorithm that generates the same forecasts as this model? If so, write down the recurrence form of that algorith